Tag Archives: PAYGO

Congress Should Follow Its PAYGO Requirements

by Sam Wice — Wednesday, Oct. 17, 2018@Wice_sam

Congress and President Trump have increased the deficit by simultaneously increasing spending while cutting revenue. The Department of Treasury found that the deficit has ballooned to $779 billion per year. Partly in response to the ballooning deficit, Congress formed the Joint Select Committee on Budget and Appropriations Process Reform to propose reforms to the appropriations […]

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Waiting Until January 3 to Sign Tax Reform Would Not Have Delayed a PAYGO Sequestration

by Sam Wice — Saturday, Dec. 23, 2017@Wice_sam

In an earlier post, I suggested that Republicans should wait until January 2018 to pass tax reform so that they can delay a Pay-As-You-Go (PAYGO) sequestration.  President Trump appears to have taken this idea to heart and decided that if Congress did not waive the PAYGO sequestration, he would wait until January 3, 2018 to […]

Congress Just Allowed President Trump to Estimate the Official Costs of Tax Reform

by Sam Wice — Tuesday, Dec. 19, 2017@Wice_sam

Republicans plan to pass a deficit increasing tax-reform proposal, but the Pay-As-You-Go Act (PAYGO) requires that legislation cannot increase the deficit within a five-year or ten-year window.  If legislation would increase the deficit in either window, an offsetting, automatic sequestration would kick in.  Although the non-partisan Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) […]

The Gimmick Republicans Could Use to Avoid a PAYGO Sequestration

by Sam Wice — Monday, Dec. 11, 2017@Wice_sam

Republicans plan to pass a deficit increasing tax-reform proposal, but the Pay-As-You-Go Act (PAYGO) would require a sequestration, an automatic reduction in spending, if tax reform increased the deficit.  Republicans could avoid a sequestration by convincing Senate Democrats to support legislation lifting the sequestration.  Democrats, however, might not be willing to compromise on an issue […]